Gov’t to Reduce Toll Rates for Logistics Transportations

President gives a statement to journalists at the Ministry of State Secretariat Main Building, Jakarta, Friday (23/3).

President Joko “Jokowi” Widodo hopes that toll rates for logistics transportation can be reduced as soon as possible.

The President made the statement to journalists at Ministry of State Secretariat Main Building, Jakarta, Friday (23/3).

“The details were given to me yesterday but we have not yet decided on a tax holiday and extension of the concession,” the President said.

President Jokowi also said that he had ordered Minister of Public Works and Public Housing Basuki Hadimuldjono, Minister of State-owned Enterprises Rini Soemarno, and Minister of Transportation Budi Karya Sumadi to lower toll rates for logistics transportation as much as possible.

“I am still trying to get a tax holiday on the pioneer projects we work on so that the burden or cost calculation that will appear on the rates output is reduced,” the President said.

According to the President, one of the ways that can be taken to reduce the cost that causes expensive toll rates is to extend the concession and with the concession extension, the toll rates reduction is very possible because the burden of the return on profit is longer so the toll rates can be lowered.

“Actually, there are a lot of roads that we can take if we look in detail. I think the rates could go down maybe 20 to 30 percent,” the President continued.

The President further said that the plan to reduce the toll tariff stem from the complaints of the drivers he often hears during visits the regions. “I often visit regions. This is from the drivers. I say what it is. If it only came from just one driver, it is OK, but if you also hear it from two or three drivers, we have to evaluate this,” the President concluded. (BPMI/EN) (GWH/EP/Naster)